Deutsche Bank shares fell 14% on Friday after a spike in credit default swaps on Thursday night, as concerns about the stability of Europe’s banks persisted.
The Bank of England on Thursday hiked interest rates to their highest level since 2008 as it grapples with persistent high inflation.
U.K. inflation unexpectedly jumped in February as food and energy bills continued to soar, placing further pressure on households.
The demise of banking giant Credit Suisse sent shockwaves through financial markets and appears to have dealt a blow to Switzerland’s reputation for stability.
Despite bold proclamations about a return to stability, the sale of Credit Suisse to UBS does not appear to have laid to rest contagion concerns.
“BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so,” a company spokesperson told CNBC.
JPMorgan’s Kian Abouhossein described a Credit Suisse takeover by UBS as “the more likely scenario.”
Credit Suisse shares fell 10% Friday morning after soaring over the previous session.
Credit Suisse shares rose over 30% at the market open after the bank said that it will borrow up to $54 billion from the Swiss National Bank.
Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day as the bank’s biggest backer says it can’t provide more financial help.